The German Bundestag extends vehicle tax exemption for electric cars

The vehicle tax exemption for purely electric vehicles will be extended by five years. This was decided by the Bundestag; the Bundesrat raised no objections.

Anyone who buys an electric car by the end of 2030 will continue to be exempt from vehicle tax. The Bundestag has extended the exemption for electric cars by five years. The Bundesrat has no objections to the bill.

Pure electric vehicles that are first registered or completely converted to electric drive by December 31, 2030, are exempt from the tax. Without the "Eighth Act Amending the Motor Vehicle Tax Act," the tax exemption would only apply to vehicles first registered or converted by the end of 2025. 

Ten years of tax exemption, but at the latest until the end of 2035

The ten-year tax exemption However, it will be limited to no later than December 31, 2035, "to give a Incentive for early acquisition "To give rise to a purely electric vehicle and to keep motor vehicle tax revenue as stable as possible," writes the Federal Government. 

After the exemption expires, the motor vehicle tax is reduced by 50 percent before being calculated on a sliding scale based on weight.

The CDU/CSU, SPD, and Alliance 90/The Greens voted in favor of the bill, while the AfD parliamentary group voted against it. The Left parliamentary group abstained.

Source: German Bundestag

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